FINANCIAL PERFORMANCE
For the year ended 31 December 2015
(“FY2015”), the Group reported a 12.4%
improvement in revenue of S$580.7 million,
from S$516.8 million in FY2014. The higher
revenue resulted from revenue increases
registered by all three business divisions,
Personal Communications Solutions
Services (“PCS”), Info-Communications
Technology Services (“ICT”) and Network
Engineering Services (“Engineering”).
The Group’s profit before tax (“PBT”) of
S$12.2 million was a 6.5% improvement
over FY2014 on the back of higher
gross profits. If not for a one-off loss
of S$0.4 million on disposal of a joint
venture and S$0.2 million of additional
contingent consideration on acquisition
of NxGen Communications Pte Ltd,
FY2015 PBT would have stood at S$12.8
million, an 11.9% increase over FY2014.
Consequently, the Group posted profit
attributable to equity holders of S$10.3
million, which was a 9.5% improvement
over FY2014. Gross margin, however,
declined by 0.8 percentage points to 7.4%
from lower margin contributions from ICT
and Engineering Divisions.
The Group maintained a strong balance
sheet, with a cash position of S$44.6
million as at 31 December 2015, compared
to S$38.0 million over the same period
last year.
PERSONAL COMMUNICATIONS
SOLUTIONS SERVICES (“PCS”)
PCS division contributed revenue of
S$413.7 million and PBT of S$7.7 million
in FY2015 which is 71.2% and 60.2% of
total Group revenue and operating PBT
respectively. The revenue improvement
of S$49.1 million or 13.4% was on account
of higher prepaid sales, as the division
enjoyed returns from its appointment as
the new master distributor of StarHub
prepaid business. This was offset by lower
Singapore channel sales and lower revenue
from Malaysia. The division’s performance
was also positively impacted by new
launches of Samsung’s iconic flagship
models, the Samsung Galaxy S6 4G+ and
Samsung Galaxy S6 Edge 4G+ in April,
the Tab S2 LTE tablets in July, and the
Samsung Galaxy Note 5 4G+ in August. As
in past years, there was intense market
competition as operators and mobile
device manufacturers fought for market
share among savvy and value-conscious
consumers.
Operating PBT increased by S$0.9 million
or 13.2% mainly from higher contribution
from our Singapore operations, with the
weakened Malaysian Ringgit impacting
profit contribution from Malaysia. Planet
Telecoms Managed Services Sdn. Bhd.
(“PTMS”), continued its close partnership
with U Mobile Sdn Bhd (“U Mobile”) in
Malaysia, operating a total of 16 U Mobile
shops and working closely on new product
launches and marketing initiatives.
The division, through its subsidiaries,
Planet Telecoms (S) Pte Ltd (“Planet
Telecoms”) and Planet Managed Services
Pte. Ltd., expanded its retail footprint
in Singapore. With the opening of a new
StarHub Platinum Store at Waterway
Point, there is now a touchpoint for
customers in the fast-growing Punggol
precinct. In keeping up with other Platinum
Stores, the brand new 1,550 sq. ft.
outlet boasts a comprehensive suite of
services to meet customers’ mobile, TV
and broadband needs with an experiential
element for customers to try out the
latest smartphones, tablets and wearable
devices. It also increased the retail
space of its StarHub Platinum Store at
15
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
OPERATIONS
REVIEW
